South Korea inspects six banks over virtual currency services to clients

Jan 10, 2018

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JANUARY 8, 2018

South Korean financial authorities on Monday said they are inspecting six local banks that offer virtual currency accounts to institutions, amid concerns the increasing use of such assets could lead to a surge in crime.

The joint inspection by the Financial Services Commission (FSC) and Financial Supervisory Service (FSS) will check if banks are adhering to anti-money laundering rules and using real names for accounts, FSC Chairman Choi Jong-ku told a press conference.

The six banks named by the regulator have all provided virtual currency accounts to clients that handle cryptocurrencies, according to the FSC. The banks are NH Bank, Industrial Bank of Korea (024110.KS), Shinhan Bank [SHINBC.UL], Kookmin Bank [KOOKM.UL], Woori Bank (000030.KS) and Korea Development Bank [KDB.UL].